Home Cars The Biggest Scandals and Cover Ups in the Automotive Industry

The Biggest Scandals and Cover Ups in the Automotive Industry

Vukasin Herbez July 18, 2018

8. Ford Explorer Roll-Over Scandal

As one of the first popular SUV models, the Explorer from the early 1990s was the typical example of the concept. Big, powerful, luxurious, and capable, it could carry its passengers with ease over any terrain. Well, at least it looked like it could. Despite the popularity, alarming reports of instability and tendencies to roll over plagued the Explorer and the car public.

Apparently, the Explorer wasn’t stable at sharp turns and high speeds. This caused numerous crashes, injuries and even deaths. Slowly, the story unfolded, and Ford admitted they had concerns regarding stability and road holding. However, the tire manufacturer, Firestone, ensured Ford’s engineers they could solve the problem by deflating the tires below the recommended limit.

Ford did that, but the situation got even worse, evolving into a major scandal with Ford and Firestone as the main culprits. The aftermath of this scandal was a massive recall of Ford Explorers and a sharp decline in stock prices of both companies. They also faced big penalties, many lawsuits and a severe loss of reputation.

9. Toyota’s Unintended Acceleration

Toyota has always been famous for paying attention to the quality of its products. However, in 2012 they made a deal with the U.S. government to pay $1.2 billion to avoid criminal prosecution. This was when the global car community realized that even Toyota could cover something up. In fact, Toyota desperately wanted to hide the unintended acceleration on various Toyota and Lexus models due to a faulty part.

For several years, the company hid documents showing they knew about the problem but decided to do nothing about it. However, when the case was brought to light, Toyota paid all the expenses. They also settled out of court and recalled 9.3 million cars in one of the biggest recall cases in history.

10. Takata’s Exploding Airbags

The Takata case is still open and could be the biggest recall case in the history of the car industry. From 2000 to 2008, the Japanese company, Takata, produced at least 17 million airbags for installation in millions of cars. In fact, Takata supplied 10 of the biggest car companies in the world, which made things even worse.

The problem with the airbags was, under specific circumstances like moisture or heat, the airbags could deploy without a cause, creating a small explosion inside the car. Since the airbag is in a metal container, the tiny pieces could injure or even kill passengers in the car. All 10 of the world’s biggest car makers are working together to resolve the issue, but experts say over 30 million cars could be affected.

11. GM’s Ignition Switch Problem

GM was in the spotlight again in 2007, but not because of bankruptcy and their government bailout. This time, it was due to one of the worst cover-ups in recent years. The problem was a faulty ignition switch in many GM models, such as the Chevrolet Cobalt and Pontiac G5. In some cases, during the drive, the car would shut down completely, causing the driver to lose control and eventually crash.

But this wasn’t the worst part. When the ignition switch shut down, the engine also shut down the safety systems like the airbags and ABS brakes. This made the crash even worse since the passengers were left without protection. GM tried to cover things up by replacing the problematic part with an upgraded one, giving it the same part number. But eventually, reports of deaths and injuries started coming in, revealing the scandal.

The court cases are still active, and the death toll has risen to 124 people. However, GM is still trying to fight the case. Their main argument is that the faulty ignition switch is a part of the old GM and after the restructuring and government bailout, they are not the same company.

12. Volkswagen’s Dieselgate

In 2015, Volkswagen was the biggest car company in the world. But unfortunately, this position was severely shaken by the EPA’s legal action and alleged violation of the Clean Air Act. Apparently, Volkswagen was cheating on their emissions testing by installing special software in the diesel cars they sold on the North American market.

The software was on when they tested their cars for emissions, but it automatically shut off during normal use. Volkswagen marketed diesel cars as a cleaner fuel alternative, but in fact, they were polluting the environment more than regular gasoline-powered cars.

Soon, people called the scandal Dieselgate. It caused car dealers to put Stop Sale signs on all Volkswagen diesel products. There were also millions of angry buyers and a severe drop in sales. Currently, the Dieselgate situation is costing Volkswagen close to $15 billion in the U.S. market alone.

13. Ferrari 458 Fires

It is hard to imagine what could be the problem with one of the best sports cars of today but apparently, Ferrari issued recalls for all Ferrari 458s they made back in 2012. The cost of the recall was over $300 million. And it affected owners all over the world.

The reason was a series of unexplained fires that destroyed several cars. Engineers found that the reason was the glue they used to hold several components together. Due to the extreme heat the engine produced, the glue melted, causing devastating fires in a matter of minutes. It looks like they have solved the problem and the 458 still remains one of the best cars money can buy.

14. Firestone’s Exploding Tires

Despite the tragic scandal with Ford, the Firestone Company was under public scrutiny again in early 2000s when it recalled 6.5 million tires used by all manufacturers. The tires were known to explode for no reason, causing crashes, injuries and deaths.

The recall was terribly expensive and took over a year to complete. The U.S. Safety Commission estimated that Firestone’s tires caused over 200 deaths, and over 4,000 crashes and complaints.

These are the biggest scandals and cover-ups in the automotive industry. Some were accidental, some were intentional, and some weren’t even real, but they weigh heavily on the minds of car consumers everywhere. These car scandals show how important it is for car buyers to do their homework before heading to the dealership.

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